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Securities
Breach of Fiduciary Duty
Breach of Supervisory Rules

Roger Scott Talman and Catherine Margaret Talman, individually and as Trustees of the 1990 Talman Family Living Trust UTD 10/22/1990 v. Wells Fargo Clearing Services LLC dba Wells Fargo Advisors LLC, a Delaware limited liability company, Timothy Patrick Cusick

Published: Mar. 15, 2019 | Result Date: Jan. 21, 2019 | Filing Date: Jan. 22, 2018 |

Case number: FINRA: 18-00243 Arbitration –  Expungement Denied

Arbitrator

Thaddeus J. Tecza


Attorneys

Claimant

Leslie S. Akins
(Leslie Schwaebe Akins LC)


Respondent

Judy Louie
(Wells Fargo Advisors LLC)


Facts

Roger Talman and Catherine Talman filed an arbitration claim against Wells Fargo Clearing Services LLC dba Wells Fargo Advisors LLC and Timothy Cusick in relation to an investment in an options trading strategy.

Contentions

CLAIMANTS' CONTENTIONS: Claimants alleged that their investment in an options trading strategy resulted in significant losses that the respondents tried to cover up with misleading account statements and annual performance summaries. Claimants asserted causes of action for breach of fiduciary duty, negligence, breach of supervisory rules, fraud and deceit, constructive fraud, violation of Section 10(b) of the Securities Exchange Act of 1934 and SEC rule 10b-5, violation of the California Securities Act, financial elder abuse, unjust enrichment and respondeat superior.

RESPONDENTS' CONTENTIONS: Respondents denied the allegations.

Result

The parties resolved the arbitration matter and dismissed the claim. After the parties settled, Cusick requested expungement of this arbitration matter from his Central Registration Depository records but the court denied the request.

Other Information

ARBITRATORS: Thaddeus J. Tecza, presiding chairperson, Mary C. Davis, Val D. Hornstein.


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